Agoracom

http://manitobagoldmining.com/2008/0...

Based on personal experience in the exploration industry I would think that a great place to look for a new gold discovery would be next to an old one. Numerous new gold finds have resulted due to the use of advanced exploration methods and a better understanding of the geology features found at old deposits.

There is a marked difference in the manner that exploration is conducted today verses yesterday. Another important fact to consider, is that ore grades that were considered uneconomical in the past can be mined at a profit today, due to the increased price of gold and improvements in mining methods.

It is clear that we have a better understanding of geology today than in the past and we are better equipped to look further and in more detail into geological structures. Those points alone can warrant a renewed exploration visit to older mines, after all there was gold found in the area. That fact gives at least a heads up as to where to start looking.

It appears that there is some agreement with this line of thinking, evidence of which can be found in the results obtained by some gold mining companies. Judging from recent press releases a closer look at old discoveries may indeed pay off.

In a February 19 press release Gold Corp announced a 9% increase in gold reserves and provided some details on it’s exploration plans.

In 2007, Goldcorp invested $134 million into exploration, of which $91 million was capitalized. Finding costs for proven and probable plus measured and indicated gold ounces amounted to less than $15.00 per gold ounnce.

One of the most interesting statements in the press release was this one:

“Exploration investment across our portfolio of existing mines and projects continues to drive organic growth,” said Kevin McArthur, President and Chief Executive Officer. “Our 2007 focus to drill in the shadows of our own headframes has delivered low cost gold ounces, not only in terms of discovery costs, but also in terms of incremental capital required to develop the resources. This strategy will serve to maximize shareholder value.”

That certainly adds weight to the the words ” the best place to look for a new gold deposit is next to an old one” anyone who has followed the history of Gold Corp will know just how real that statement can be. The spectacular early discoveries made by Gold Corp at the Red Lake Mine bear testament to that statement.

Gold Corp also acquired 100% ownership of Porcupine and Musselwhite mines in Canada to add nearly 2 million onces to reserves. The company did not have total ownership prior to 2007. To provide a little more insight into the importance of directing exploration dollars into areas of historic production we need only look at where the company plans to explore in 2008. The following is a quote from the press release at cnmoney.com

“”Goldcorp expects to invest an additional $150 million in exploration in 2008, with the goal of further increasing reserves and resources. Exploration priorities include:

- Increased drilling at Red Lake, with an emphasis on the under-explored Party Wall Zone in 2008. The Company has begun work on a 1,000 metre exploration drift above the Red Lake High Grade Zone that will allow for more concentrated drilling to the 57 level in 2009.

- Exploring the strike extent and depth potential of the ore zones at Eleonore in Quebec. Recent strong drilling results to the north and west of the Roberto Zone support accelerated drilling effort.

- Continued study of deep underground concepts at Penasquito, including concurrent high grade underground mining beneath the open pits and investigation of block caving scenarios.

- Building on recent exploration successes at Porcupine and Musselwhite mines in Ontario.

- Continued regional work around many of the Company’s mines and projects.”"”

Given the success that Gold Corp has had in finding new reserves next to older mines and deposits, it is not hard to understand the increase in exploration efforts around existing infrastructure. Read the Gold Corp Press Release

Earlier today San Gold Corporation, a company in Manitoba, announced new drill results from exploration within close proximity to their two mines at Bissett. These new results add to previously announced new high grade discoveries near the existing mines and deep underground in their Rice Lake Mine. If we look at the press releases at SangoldCorp.com we can see that San Gold is also finding excellent new gold discoveries next to an old mine. Read recent post Here

With some Due Diligence one can see a lot of similarity’s in the exploration results reported by these two companies, enough to realize that applying new strategies and exploration techniques to old mines can produce surprising results.